Unitech

Hi guys.......Got 1000 of Unitech@110 first tyime buyer when to average........

Hi Vishal,
No one can say for certain what to do, you need to make your own decision.

I have to presume that you purchased for the long term, 3-5 years at least.

The stock looks to be in freefall but you could get a dead cat bounce to exit closer to 90! Then look for signs of a new up trend forming to re-enter.

Your other choice is to 'average' as you say. Maybe the stock will find support at 80 or the worst case looks like 60. Who knows what news has driven this stock down, I think it is that infrastructure firms have not had stellar earnings and that interest rates are going to cut into their near term profits.

If you average at 60, you are still sitting on an average of 85 which is still over 40% loss. Who knows how long it will take to recover.

It will likely take time to form a base and only from there you can decide to 'average'. Averaging on the way down is what is callled trying to catch a falling knife, you are going to get cut bad.

If you are keen to understand where you went wrong and how to avoid in the future try this thread to get all the basics in one place.

http://www.traderji.com/beginners-guide/9373-new-members-please-read.html

Hope this helps,
Regards,
Class.

instead of 'averaging' unitech why not buy some other stock?
like larsen,bhel,sbi,JSPL,Tata power etc on the correction ...